Financial Planner

Category - Investment Planning

What investments types rely on demand for pricing?
  1. Natural Resources
  2. Tangible Assets
  3. Neither A or B
  4. Both A and B
Explanation
Answer: D - Natural resources and tangle assets both rely on demand for pricing. Tangible assets include collectibles, such as baseball cards or stamps. There is a strong secondary marketplace and government regulations do not exist for these assets. Liquidity risk and fraud can run high. Natural resources investments are in timber, oil, metals, and the like. They have an elastic demand, which means they are price sensitive to demand. Increase in demand cause their values to rise, and vice versa, as do tangible assets.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz